The U.S. Treasury Department issued a report that criticized the economic policy of Germany. The report came on the background of a scandal between Germany and the United States over the activities of U.S. intelligence.
In the semi-annual 34-page report on the current state of the global economy, the international management of the U.S. Treasury Department reported that the excessive export oriented German economy prevents the establishment of economic stability in the euro area and, as a consequence, harm the global economy.
According to the report, a weak domestic demand growth in Germany and a commitment to the export prevent the restoring of balance. This leads to the threat of deflation for the euro area and the global economy. If domestic demand in Germany was more, it would help to remove the problem of imbalance in the European economy.
The report notes that the EU authorities can solve this problem, but the procedure for identifying imbalances remains asymmetric and not paying enough attention to countries such as Germany.
Typically, in its semi-annual reports the U.S. Treasury criticizes the economic policy of China and the latest report is no exception. The U.S. Treasury said that a stronger Yuan would stimulate domestic demand, which would help the entire Chinese economy, for which the Chinese leadership is necessary to reduce foreign exchange intervention.
However, such a harsh criticism of the economic policy of Germany has attracted the attention of experts.
“I find it a bit odd,” Tony Nash, a vice-president of the international research firm IHS Global Insight said BBC. “Euro zone needs to grow and Germany is just one of the most likely places for such growth. For the euro zone would be better if somewhere will be a source of exports, for example in Germany. It's better than not having a substantial source of growth at all.” he added.
The U.S. Treasury Department released the report on the background of the conflict between Germany and the United States in connection with the activities of U.S. intelligence and information published by Edward Snowden.
According to media reports, U.S. intelligence agencies for ten years monitored the personal correspondence and telephone calls of millions of citizens in more than 35 countries. In those listening were the leaders of Germany, Brazil, France, Spain, Italy, Mexico and other countries.
